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JNF’s Maximizing Your Impact Through Donor Advised Funds
JNF’s Maximizing Your Impact Through Donor Advised Funds
Jewish National Fund-USA
66 views • 1 likes
3 weeks ago • 58:49 min
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Transcript
[00:01]
Well, hello everyone. Thanks for joining
[00:03]
us.
[00:06]
Trying to get my computer to work a
[00:08]
little bit.
[00:13]
>> So, thank you for joining us on our
[00:15]
webinar regarding donor advised funds.
[00:19]
A couple of words about what you're
[00:22]
going to listen to. Over the last
[00:24]
several years, the donor advice fund
[00:27]
across charities and commercially
[00:30]
available vehicles has been the um has
[00:34]
been very popular. As a matter of fact,
[00:36]
I think the largest charity in the
[00:39]
country right now, it's not the American
[00:41]
Cancer Society or even Jewish National
[00:45]
Fund. The largest charity right now is
[00:48]
the Fidelity Charitable Gift Fund. There
[00:51]
are numerous reasons for this and we're
[00:53]
going to try to explain those reasons
[00:56]
for you today and if you have an
[00:58]
interest you could always call us. Uh
[01:00]
we're it's great because we have four
[01:03]
experts in the field that will each give
[01:06]
you a little piece of what a donor
[01:08]
advised fund is. And for Jewish National
[01:11]
Fund, it is a service that we offer our
[01:13]
donors at a what we think is a very
[01:16]
competitive price and what we think is a
[01:19]
terrific program that offers a lot of
[01:22]
the same features you will see in a
[01:24]
commercially available program and like
[01:27]
I say at a at a cost that we believe is
[01:31]
usually usually a lot lower. So,
[01:35]
it's going to be a great program. You're
[01:37]
going to learn a lot. Feel free to ask
[01:40]
questions. Um, you could either do it
[01:43]
live or type them into the uh chat
[01:46]
feature and we will answer them as we go
[01:49]
along.
[01:51]
So to begin with, I'm really pleased to
[01:54]
introduce
[01:56]
uh Deb Zeluda. Deb Luda is uh the
[02:00]
president of Jewish National Fund. Um,
[02:04]
she's a successful attorney, 25 years,
[02:08]
uh, in trust, estates, tax, and business
[02:11]
law. I've known her for a while. She's a
[02:14]
passionate passionate uh philanthropist.
[02:18]
Served as a chair of Jewish National
[02:20]
Funds Go Northwest Task Force, active
[02:24]
member of our ambassador group.
[02:26]
Previously served as president of Jewish
[02:29]
National Funds Chicago chapter and has
[02:32]
held a lot of leadership roles in our
[02:35]
organization. And like I say, today she
[02:38]
is our president. She's a proud Zionist.
[02:42]
We use that word proudly here. She's
[02:45]
completed a master's in Jewish
[02:47]
professional studies at the Jewish
[02:50]
Learning Institute and leadership in
[02:52]
Chicago. And she started her own travel
[02:55]
business for trips to Israel that
[02:59]
combine philanthropy and experiences.
[03:03]
So join me in welcoming the president of
[03:06]
Jewish National Fund, Deb Zeluda.
[03:11]
Thank you, Matt. And uh thank you
[03:13]
everyone for being on this Zoom today.
[03:20]
Um and it's nice to be together. So
[03:24]
couple weeks ago, um I was asked if I
[03:27]
would speak to this group about donor
[03:30]
adise funds and my experience with donor
[03:33]
adise fund and Jewish national fund and
[03:34]
donor adise funds. And I'm going to I'm
[03:37]
going to start from a few years ago, a a
[03:41]
number of years ago, maybe 15 maybe 15
[03:45]
or more years ago. I was at a uh about
[03:49]
Yeah, I was at a at a a summer campaign
[03:52]
summit. I don't remember where it was
[03:55]
and I'm in the audience and I was, you
[03:57]
know, just getting involved with with
[03:59]
Jewish National Fund and we were talking
[04:02]
about different avenues, fundraising,
[04:04]
Jewish National Fund, learning about the
[04:06]
organization
[04:08]
and again this was quite a while ago and
[04:12]
I think Matt was speaking to the group
[04:14]
and talking about charitable giving
[04:16]
vehicles
[04:18]
and I raised my hand and I said, "What
[04:21]
about donor advised funds? He's like,
[04:23]
"Yeah, yeah, like, yeah, they're they're
[04:25]
good, but let's talk about this." And
[04:27]
again, this was a long time ago was
[04:29]
before we really started focusing on it.
[04:32]
And I'll tell you why we focus on it.
[04:35]
And I said, "Well, it just seems like
[04:36]
it's such an easy thing to do and it's a
[04:38]
great way to give assets and give
[04:42]
appreciated assets and you'll learn
[04:43]
about all the tax benefits." Anyway,
[04:46]
fast forward a few years and as an
[04:50]
organization, we really understood that
[04:54]
you can't leave the charitable business
[04:57]
to the fidelities of the world. And and
[05:00]
frankly, we understood that we could do
[05:03]
something really fantastic
[05:06]
for our donors, which also benefits our
[05:09]
organization, which also benefits
[05:12]
Israel.
[05:14]
um and we could do it all in one fell
[05:16]
swoop with the donor adise fund. So at
[05:19]
that time I had my husband and I had a
[05:21]
small donor adise fund with another
[05:23]
nonprofit
[05:26]
and um and we thought to ourselves you
[05:30]
know I don't know let's start a private
[05:33]
foundation. We thought let's start a
[05:35]
private foundation because we can use a
[05:37]
private foundation to make some
[05:39]
interesting alternative investments. We
[05:41]
wanted to invest in like alternative
[05:43]
investments in Israel. We were kind of
[05:46]
passionate about Israel. We wanted to
[05:47]
support Israel as a way to support them.
[05:49]
So, we went through this process of we
[05:51]
had our donor advice fund and then we
[05:53]
went through this process of starting
[05:55]
this small foundation. Now, we're both
[05:58]
lawyers and we thought, okay, we're
[06:00]
lawyers, so we don't have to worry the
[06:02]
fees, whatever the fees are to start a
[06:04]
foundation. It took us forever. We
[06:07]
started the foundation. It was such a
[06:10]
pain in the butt. We had all these
[06:12]
reporting requirements. It was
[06:13]
expensive. Yet, we still had to pay some
[06:16]
fees to some, you know, for for setting
[06:19]
it up and for the registration and the
[06:21]
filing fees. And we ended up never using
[06:24]
it for the purpose intended because we
[06:26]
understood that we could accomplish so
[06:28]
much with a donor adise fund.
[06:31]
So
[06:33]
fast forward a few more years getting
[06:35]
more involved with Jewish National Fund
[06:37]
and I had this other DAFF with another
[06:39]
organization and this DAFF
[06:43]
the way that it worked was first of all
[06:45]
their administrative fees were somewhat
[06:46]
high setting that aside
[06:50]
if we didn't allocate the income on an
[06:53]
annual basis the income defaulted to the
[06:58]
organization. So basically, if we
[07:01]
started out with $10,000,
[07:03]
we ended the year with $10,000 because
[07:06]
whatever income was acred that we didn't
[07:08]
allocate, it went to the charitable
[07:10]
organization. That was kind of annoying.
[07:12]
So I learned more about how Jewish
[07:15]
National Fund set up their DAFF. And
[07:17]
again, you'll learn more about that
[07:19]
later.
[07:21]
Um, and we shifted from the organization
[07:26]
to JNF. We closed our foundation. We
[07:30]
shifted those funds to JNF and we've
[07:34]
been continuing to increase our death
[07:37]
with Jewish National Fund. Now, you know
[07:40]
why Jewish National Fund? Well, you
[07:42]
know, I don't know everybody who's on
[07:43]
this call. I recognize a number of the
[07:45]
names. I I saw them before the call
[07:47]
started. And so, most if not all of you
[07:51]
are in one way or another connected to
[07:54]
Jewish National Fund. But for us,
[07:57]
establishing a DAFF through an
[08:00]
organization which is near and dear to
[08:02]
our hearts
[08:04]
gives us the ability to benefit
[08:08]
the organization.
[08:11]
Change that to benefit Israel. Why?
[08:14]
Because number one, the money is with
[08:17]
Jewish National Fund. We also know that
[08:19]
a portion of the money has to be
[08:21]
allocated to Jewish National Fund. And
[08:25]
it gives us a vehicle to work with our
[08:27]
family, not dissimilar to a foundation
[08:32]
where we have this fund that is
[08:35]
available for our family to allocate to
[08:39]
charities of our choice.
[08:42]
And as a family, we took advantage of
[08:45]
that. and my husband and I um
[08:49]
took the opportunity to create a mission
[08:52]
statement for our death that we've spent
[08:56]
quite a bit of time on and we massage it
[08:58]
each year and we sent that to our kids.
[09:02]
We have two daughters, 34 and 37.
[09:05]
They're both married. They both have
[09:07]
children and we felt it was important
[09:09]
for our kids to understand what was
[09:11]
important to us. And we know that what's
[09:15]
important to us may not be important to
[09:17]
them. But at the end of the day, we
[09:20]
establish the death and we feel that we
[09:22]
have the capability of
[09:26]
guiding
[09:29]
what will happen in the future. So each
[09:32]
year and and and our mission statement
[09:36]
is focused on the things that were
[09:38]
important to both me and my husband in
[09:40]
the giving that we've been doing over
[09:42]
the years. And you know we we talked
[09:45]
about it in terms of Israel centric and
[09:50]
um
[09:53]
giving in accordance with Jewish values.
[09:57]
So, it doesn't have to necessarily be
[09:59]
Jewish organizations, although of course
[10:01]
that's important, but it's not just
[10:04]
about Jewish organizations because we
[10:05]
understand that again, what's important
[10:07]
to our kids, it may not be the same as
[10:09]
the things that are important to us. But
[10:11]
we also feel that when you talk about
[10:13]
giving Jewishly, and I've had this
[10:15]
conversation with Matt before and and
[10:18]
with Bill over the years, that if we
[10:20]
talk about giving Jewishly and in
[10:23]
accordance with Jewish values, it will
[10:26]
in some way also bring along with it
[10:30]
giving to Jewish organizations. And
[10:33]
since I have one daughter who lives in
[10:35]
Israel, her mind is always focused on
[10:37]
Israel, we're pretty confident that at
[10:39]
least 50% will go toward Israel or
[10:41]
Israel centric organizations. Uh, and so
[10:45]
far she's proven me right. So every time
[10:47]
we've given funds, we tell our daughters
[10:49]
each year, you have x amount of dollars,
[10:53]
tell us where you wanted to go and tell
[10:55]
us what is why you want to give to those
[10:58]
organizations and what Jewish values
[11:01]
what are what uniquely Jewish values are
[11:03]
you accomplishing with that giving. So
[11:06]
we really try and bring it all together
[11:08]
through this donor adise fund and we
[11:10]
feel that we have the um ability to do
[11:13]
that with our Jewish National Fund. um
[11:16]
death and and
[11:19]
because Israel and Jewish organizations
[11:23]
and Jewish values are important to me
[11:26]
and my husband, it seemed quite
[11:28]
appropriate to have a DAFF with JNF
[11:33]
and it it allows us to accomplish all of
[11:35]
those objectives. So, you know, I'm not
[11:37]
going to talk about the legal aspects
[11:39]
and the tax tax aspects. And I know that
[11:41]
you have your um we have our
[11:44]
professionals here that are going to
[11:45]
talk about those things with you. I
[11:47]
probably could. It's part of my
[11:49]
training, but I'm going to set that
[11:52]
aside. I'm going to let you guys do
[11:53]
that. Um, but I I just feel we felt that
[11:57]
it was the perfect avenue for us as a
[12:01]
family to to give Jewishly, to give to
[12:04]
Israel, to help those things that are
[12:07]
important to us. and you know and we've
[12:10]
we've allocated at this point we've
[12:12]
taken sort of larger portions and now
[12:14]
we're starting to think about what can
[12:17]
we as a family and I actually said this
[12:19]
to my husband recently we need to sit
[12:22]
down with the appropriate people at JNF
[12:25]
and talk about what the opportunities
[12:28]
are for us to take a larger piece of our
[12:32]
daff and to allocate it to JNF to those
[12:36]
things that are important to us so that
[12:39]
we can create that family legacy for our
[12:41]
kids and um and having the these funds
[12:45]
in the DAFF allows us to do that. Now,
[12:47]
as I said before, we allocate I actually
[12:50]
allocate monthly. I put money in
[12:52]
monthly. It's a way for me to accomplish
[12:54]
our annual giving, putting it all into
[12:57]
the DAFF. And then we can take our time
[13:02]
in deciding where we want to allocate
[13:04]
and how we want to allocate and how much
[13:07]
we want to allocate to JNF. Um, and we
[13:10]
can do that as and when we want. We're
[13:12]
not limited by we have to give away 5% a
[13:14]
year, which is true with private
[13:15]
foundation rules. So, we can give as
[13:18]
much as we want at a time. And we've
[13:20]
actually also, by the way, um,
[13:23]
contributed to the DAFF. I think
[13:24]
somebody asked a question and I don't
[13:26]
know what the rules are today, but I
[13:28]
know that we had some some assets where
[13:31]
there were going to be gains and we
[13:32]
actually allocated those assets to the
[13:36]
DAFF so that we didn't have to worry
[13:38]
about the gains within and um it was a
[13:41]
way for us to to transfer um appreciated
[13:43]
securities without taking into account
[13:46]
the gains and it's how we accomplished
[13:47]
our giving for that year with those
[13:49]
appreciated securities. So, um, anyway,
[13:52]
long and the short of it. Um, I know I'm
[13:54]
kind of all over the place and I
[13:55]
apologize for that, but I get excited
[13:57]
when I talk about this. As I said, I've
[13:59]
been talking about DAS for years and and
[14:01]
I I love the fact that that Jewish
[14:04]
National Fund gives us that opportunity
[14:06]
to do the f the kind of family giving
[14:09]
that we as a family want to do and want
[14:11]
to continue to do. And hopefully, we'll
[14:14]
begin bringing our children into doing.
[14:16]
And I don't know the age of the people
[14:18]
on this call, but I will say to you that
[14:21]
if you have young adult children and
[14:24]
they don't seem charitably inclined,
[14:28]
you're not alone.
[14:30]
Okay? I think it's important to say
[14:31]
that. And it doesn't mean that they
[14:34]
won't be. They're just their lives are
[14:35]
taking them in different directions now.
[14:37]
But having this vehicle really gives you
[14:40]
the opportunity to get them to think
[14:41]
about these things. And over time when
[14:44]
their lives begin to be less
[14:45]
complicated, then they will then have
[14:48]
the the the assets to to direct in a
[14:53]
charitable way, in a Jewish way, and
[14:56]
hopefully in a Jewish and Israel centric
[14:59]
way. So
[15:01]
>> yeah, thank you so much for the words.
[15:03]
We appreciate it.
[15:04]
>> And if anyone has questions, I'll I'll
[15:06]
stay on. If you have questions, you can
[15:08]
put them in the chat. You can ask during
[15:10]
question and answer time. and I'm always
[15:12]
available to answer any questions
[15:14]
whether it's on this call or otherwise.
[15:16]
They all know how to find me.
[15:18]
>> Thank you so much. So, we're getting
[15:20]
some questions in the chat. Keep putting
[15:22]
them in and we will answer them at the
[15:24]
appropriate time and and as we go along.
[15:26]
So, let's get into the meat of our
[15:28]
program and the reason why you're all
[15:30]
here is to learn about donor advised
[15:32]
funds in general and how ours works uh
[15:36]
more specifically. And to start us off,
[15:38]
I'm going to introduce Bill Adolf. Bill
[15:41]
is our plan giving director in the
[15:43]
Midwest. He also covers some areas in
[15:46]
Southwest and Texas. Bill, like all of
[15:49]
our other speakers or experts in the
[15:51]
field. Bill comes to us oh about 10
[15:54]
years ago, maybe a little bit more from
[15:57]
the financial services area. He was a
[16:00]
planner and he's been, like I say, our
[16:03]
director of plan giving in the Midwest.
[16:06]
And Bill, it's uh yours.
[16:10]
>> Thank you, Matt. And
[16:12]
>> thank you, Matt. And and um for Deb,
[16:15]
thank you as well. Deb and I actually
[16:16]
went on my first meeting when I started
[16:19]
at uh JNF. She was the president of
[16:21]
Chicago when we met went and met with
[16:23]
somebody about a donor advised fund. So
[16:26]
really through and through and Deb,
[16:28]
thank you so much for all that you do.
[16:30]
So, a donor adise fund um in its
[16:33]
simplest uh simplest words is a
[16:36]
charitable giving vehicle. Um think of
[16:39]
it as a charitable savings account. It's
[16:42]
giving made simple, flexible, and it's
[16:44]
on your terms.
[16:47]
Slide.
[16:49]
Ways you can contribute to a donor adise
[16:52]
fund uh are cash, securities, privately
[16:57]
held assets, and other complex assets as
[17:00]
well. One of the great things about a
[17:02]
charitable, excuse me, a donor advice
[17:04]
fund is the way in which it doesn't have
[17:07]
to be one certain asset that can go in.
[17:09]
One of really the only assets that you
[17:11]
can't put into there, and this was a
[17:13]
question that was asked earlier, is you
[17:15]
cannot use IRA dollars to go directly
[17:17]
from your IRA to uh a donor adise fund.
[17:21]
You would first have to take them as a
[17:23]
distribution and then turn around and
[17:25]
give it back to the donor adise fund uh
[17:27]
in terms of a gift.
[17:30]
money is invested in a donor adise fund.
[17:33]
Lots of time growing um to either keep
[17:36]
pace or uh go over your donations for
[17:40]
the year. We have lots of donor advised
[17:42]
fund clients who in a year will have
[17:45]
made a grant, continue to make grants,
[17:48]
not have made a donation in a certain
[17:49]
year, but still have the same dollar
[17:53]
amount into in the grant in the donor
[17:56]
adise funment as they would have if they
[17:59]
were continuing to make investments into
[18:01]
it. And that's because it grows just
[18:02]
like it's in the market. Now, I'm not
[18:04]
going to say that there are times that
[18:05]
it, you know, grows, goes up and down.
[18:07]
But what's great about it is you're able
[18:08]
to have it grow and it's taxfree because
[18:11]
it's not as part of your social security
[18:13]
number. It's part of our tax ID number.
[18:16]
You receive a charitable deduction when
[18:18]
you make the gift. You receive a
[18:20]
charitable deduction for the entire
[18:22]
amount amount of the gift that you make.
[18:24]
And you are able to spread that donation
[18:26]
out uh if you need it over multiple
[18:28]
years. And then you make the grants when
[18:31]
you want to make the grants. Um, like
[18:33]
Deb said, a public charity, you do not
[18:35]
have to give a certain amount uh per
[18:38]
year. But really what sets us apart from
[18:40]
other charities is it's not just here.
[18:43]
Most of our donors, most of our donor
[18:44]
advice fund holders don't just keep it.
[18:46]
Uh, they actually use it, which is
[18:48]
great. It doesn't just sit in the
[18:49]
account and grow, they're actually using
[18:50]
it, and that's what it's made for.
[18:52]
Slide.
[18:55]
DAPs are helpful for for lots of
[18:57]
different reasons. um you had a highly
[18:59]
appreciated uh stock that you'd like to
[19:01]
get rid of, that you'd like to be able
[19:02]
to use and not have to pay capital gains
[19:04]
taxes. Uh the same thing with highly
[19:07]
appreciated stock is if you have an
[19:09]
asset that let's say you bought for $10
[19:12]
and then it's now $80 and you have to
[19:15]
sell it and you have no choice. Um those
[19:17]
are definite ways to be able to put into
[19:20]
the donor adise room where you don't
[19:21]
have to worry about large capital gains
[19:23]
taxes on the part that you give to
[19:25]
charity because when you give from uh an
[19:27]
account to a charity again there is no
[19:29]
step up in basis that you do not have to
[19:30]
pay the capital gains. um a large
[19:33]
one-time charitable gift. I'm going to
[19:35]
talk about it on the next slide, but a
[19:37]
bunching is is is a way of doing that
[19:39]
where if you look uh farther down,
[19:41]
charable deductions, if you want to put
[19:43]
it into a certain year, if you want to
[19:45]
get a tax deduction one year, but may
[19:46]
not be able to hit the others, or you
[19:48]
have a tax event, a tax life situation
[19:51]
where you have to do something to help
[19:52]
lower your taxes. It's great for
[19:54]
planning uh for tax planning. And one of
[19:58]
our big parts of it is it's great to get
[20:00]
children involved in philanthropy for
[20:01]
the next generations. Like Debbie talked
[20:03]
about, they sit down with their family.
[20:05]
We have a lot of clients that we work
[20:06]
with where we sit down with the families
[20:08]
at the end of the year and help them
[20:10]
facilitate how they're going to give,
[20:12]
how the generation that started the
[20:13]
donor adise fund, uh, started the family
[20:16]
charity wanted to give because not
[20:18]
everyone's always on the same page. Uh,
[20:21]
slide.
[20:22]
Now, bunching is a a charitable
[20:24]
strategy. It's a tax planning strategy
[20:27]
and it's where you incorporate several
[20:30]
years worth of giving into one year for
[20:32]
that tax deduction. If you're just
[20:34]
giving $10,000 a year, you may not be
[20:36]
able to hit with the with the tax law
[20:39]
changes, you may not be able to hit the
[20:41]
uh going above the standard deduction.
[20:43]
So, what this does, and we can go
[20:45]
through the example right now, is let's
[20:46]
say you're giving $10,000 a year over
[20:49]
five years. It's $50,000. You're giving
[20:52]
the same $50,000 that you would give
[20:54]
over those five years, but you're not
[20:56]
hitting uh the limit that would make
[20:58]
itemizing worthwhile. So, in year one,
[21:02]
you take that $50,000 and you put it
[21:04]
into a donor adise fund.
[21:06]
Forget the growth and anything that
[21:08]
would go into it, but you put into a
[21:09]
donor advice fund. Now, for the next 5
[21:11]
years, you're able to give that money
[21:13]
out to the charities of your choice just
[21:16]
like you would normally, except you're
[21:20]
not receiving the tax deduction, but you
[21:21]
received it in year one and where you
[21:24]
were able to get that larger tax
[21:25]
deduction. So, you wouldn't itemize
[21:27]
anyways in three years 2, three, four,
[21:29]
five, because you're not going to hit
[21:30]
that deduction, but you'd be able to get
[21:32]
it um that first year and help overall
[21:35]
uh help [clears throat] with the overall
[21:36]
taxes for that year.
[21:39]
Um, a little bit more on donor advised
[21:41]
funds. Um, you're able to give a grant
[21:44]
to any 501c3 as long as they are a
[21:47]
501c3. So, you can't give to political
[21:50]
organizations. You can't give to certain
[21:53]
other organizations that don't have that
[21:55]
status. Um, and when you make the
[21:57]
grants, the grants are vetted by the
[21:59]
organization that holds the donor advice
[22:02]
fund in this case such as Jewish
[22:04]
National Fund to make sure that they are
[22:06]
public charities. and in our case that
[22:08]
they're not antithetical to anything
[22:10]
that we believe in.
[22:14]
Thank you.
[22:17]
So, Bill, any qu Well, we've answered
[22:20]
some of the questions that have came on
[22:21]
the chat. So, we're going to now
[22:23]
introduce to you uh Cynthia Hizami.
[22:27]
Cynthia is our plan giving director uh
[22:30]
on the west coast from California to
[22:34]
Colorado down through Arizona up until
[22:39]
the state of Washington. She covers a
[22:41]
wide area. Cynthia has also been with us
[22:43]
about 12 years. She is an estate
[22:46]
planning and tax attorney and she comes
[22:50]
to us with a lot of experience and she's
[22:53]
a true expert in uh in this field. So
[22:58]
Cynthia,
[23:00]
you're floor is yours.
[23:02]
>> Hi everyone. Thanks Matt.
[23:06]
So really quickly,
[23:10]
why would you want to set up a donor
[23:12]
advice fund? a donor advised fund. Just
[23:14]
like Bill said, it's like a charitable
[23:16]
savings account. And usually there's a
[23:20]
couple reasons why people come to us
[23:22]
with respect to this. You know, setting
[23:24]
up a donor advice fund. One, it's going
[23:26]
to streamline your charitable giving. If
[23:30]
you give to 5, 10, 15 charities in
[23:33]
January, you're collecting all those
[23:35]
letters. You lost three of the letters.
[23:38]
You need to go to your CPA. If you have
[23:41]
the donor adise fund, our donor adise
[23:43]
fund is online. It's just like a bank
[23:46]
account. You log in, you can see all the
[23:49]
contributions you made during the
[23:50]
calendar year. Plus, you can see all the
[23:53]
grants you made during the calendar
[23:55]
year. And in fact, you can, you know,
[23:58]
export that information onto an Excel
[24:00]
spreadsheet if you want to, or you can
[24:01]
call us. We'll do it for you. Send it to
[24:03]
your CPA. It's all in one place.
[24:06]
So, very easy. The other reason people
[24:09]
set these up, one of the other reasons
[24:11]
is they're having a highinccome event,
[24:14]
but they don't want to and they need a
[24:17]
charitable tax deduction in order to
[24:20]
offset their highinccome event. Maybe
[24:23]
they're selling something, a rental
[24:25]
property or a business or, you know,
[24:29]
whatever they're selling or they're
[24:31]
getting a bonus or they're getting some
[24:33]
kind of distribution they weren't
[24:34]
expecting. um and they need a tax
[24:37]
deduction to offset some of that income
[24:39]
tax. The donor advice fund allows you to
[24:42]
quickly put assets into this fund, but
[24:46]
you do not need to use it all at all at
[24:50]
once because you can use it at your
[24:52]
leisure. Um I think somebody asked is
[24:55]
there a limit or you know minimum
[24:58]
maximum that you can grant to charities.
[25:01]
So, you can grant out to Jewish National
[25:03]
Fund and any US charity. It has to have
[25:07]
a tax ID, not your sister's,
[25:10]
brother-in-law's grandmother's library.
[25:12]
No, it has to be a real charity. Um, and
[25:16]
the minimum that you can grant is $250.
[25:20]
You can't gift trees out of there just
[25:22]
for administration purposes. We we just
[25:24]
can't handle that. But $250 is the
[25:27]
minimum grant. There's no real maximum.
[25:30]
of course, you know, whatever is in your
[25:32]
account. Why would you choose a Jewish
[25:34]
National Fund donor advice
[25:37]
[clears throat] over, by the way,
[25:39]
Fidelity, Charles Schwab, Bank of
[25:41]
America, all of these big banks have
[25:44]
donor advice funds just like Jewish
[25:46]
National Fund, but why would you pick
[25:48]
us? So, Jewish National Fund
[25:52]
is going to treat you like a real
[25:55]
person. I kind of joke with our donors.
[25:59]
If you text me on a Sunday, I'm a human
[26:01]
being. I'm going to text you back. Am I
[26:03]
encouraging everybody to text me on
[26:05]
Sundays? I'm not. But I am here. And of
[26:08]
course, I'm going to text you back. If
[26:10]
you try to text Fidelity, you don't even
[26:13]
have a number for that, right? You
[26:15]
can't. There is no one to text at
[26:17]
Fidelity. So, we'll treat you, you know,
[26:20]
we're people. It's people to people,
[26:22]
right? People meet people. people have
[26:25]
relationships with people. So, you're a
[26:27]
real person to us and we're going to
[26:29]
treat you like that. Um, so it's a
[26:32]
concierge service, very low fees
[26:34]
compared to the Fidelities of the world.
[26:37]
Robin's going to talk about that coming
[26:39]
up. And then the other thing that I will
[26:42]
say is if you are going to set aside
[26:45]
money in a charitable savings account,
[26:48]
you might as well keep those dollars
[26:50]
with a charity. Bank of America is going
[26:54]
to make money off of your money. Jewish
[26:57]
National Fund is a nonprofit. We're not
[27:00]
allowed to make money off of your money.
[27:02]
Your money's allowed to appreciate in
[27:05]
the fund, but you get to use it, not us.
[27:08]
We're not taking it. We're not using it.
[27:11]
Why Jewish National Fund?
[27:15]
The fact that you're on this call with
[27:16]
us
[27:18]
kind of shows that you support Jewish
[27:21]
National Fund. You're interested in
[27:22]
Israel. You're interested in our
[27:24]
programs and projects. And so,
[27:27]
not only are you keeping your money with
[27:29]
a charity, your charitable dollars with
[27:31]
a charity, you're keeping your
[27:33]
charitable dollars with a Jewish charity
[27:36]
that share your values. If you have a
[27:41]
donor adise fund with Charles Schwab or
[27:43]
JP Morgan,
[27:45]
they have donor adise funds that are
[27:48]
supporting anti-Zionist organizations.
[27:52]
We will not grant against our mission.
[27:56]
And so you can be assured that that will
[27:59]
not happen. Next slide.
[28:05]
Deb talked about setting up a private
[28:07]
foundation versus a donor adise fund. At
[28:09]
this point in time,
[28:12]
the really the only reason you would
[28:14]
want to set up a private foundation is
[28:16]
if maybe you have
[28:19]
just many many millions, 25 million
[28:22]
plus. But even with 25 million plus, you
[28:26]
can still just set up a donor adise
[28:28]
fund. A donor advice fund is simple.
[28:30]
It's very simple application, one page.
[28:34]
It takes about 15 minutes to set it up.
[28:37]
There's no cost to you. There's no uh
[28:40]
the fees are very reasonable. You get to
[28:43]
pick your investment choices. They're
[28:45]
pools. You can pick up to three and
[28:47]
switch once a quarter if you wish. Um
[28:51]
the uh it's, you know, all in. If you
[28:54]
set up a private foundation, either
[28:57]
maybe you do have 25 million and you
[28:59]
want to set it up and you're going to
[29:00]
pay you're going to pay for this. You're
[29:01]
going to pay an attorney. You're going
[29:03]
to pay filing fees every year. You have
[29:05]
a tax return you have to pay. You have
[29:07]
investment money managers you have to
[29:09]
pay. You have to do research of course
[29:11]
on your charities. You have reporting
[29:14]
requirements with the IRS. Uh if you
[29:18]
donate to a donor adise fund cash, you
[29:21]
can deduct up to 60% of your adjusted
[29:23]
gross income. And for long-term
[29:26]
appreciated property, up to 30% of your
[29:28]
adjusted gross income. for a private
[29:31]
foundation the numbers are 30% and 20%.
[29:34]
So, it really makes a big difference.
[29:37]
Um, the one thing I will tell you is
[29:41]
that if you have a private foundation,
[29:43]
and I've had we've had this situation
[29:45]
where people rolled over, they just made
[29:49]
a grant, they opened a donor adise fund
[29:50]
with us, and they rolled over and opened
[29:53]
and rolled over the private foundation
[29:55]
money into the donor adise fund and
[29:58]
closed out the private foundation. If if
[30:01]
you're going to keep your private
[30:02]
foundation, a lot of people will set up
[30:04]
a companion donor advice fund in order
[30:08]
to give themselves a little flexibility.
[30:12]
Um, so you can grant into the donor
[30:13]
advice fund from the private foundation
[30:16]
in order to comply with there's a 5% uh
[30:20]
grant rule that you have to you have to
[30:22]
grant out 5% from your private
[30:25]
foundation every year, which is not a
[30:27]
rule with the donor advice fund. Of
[30:28]
course, if you don't if you set up a
[30:30]
donor advice phone with us and just
[30:31]
don't grant anything out for 3 4 years,
[30:35]
we're going to call you, but there's no
[30:37]
legal requirement that you actually need
[30:40]
to uh make any grants from your donor
[30:43]
advice fund. So, I would say the donor
[30:46]
advice fund is cheap, less expensive,
[30:49]
more streamline, more effective.
[30:52]
Um, [clears throat] all in it's just the
[30:55]
better choice. Next slide.
[30:58]
Um so the other thing about the private
[31:01]
foundations versus the donor adise fund
[31:03]
is the private foundations are
[31:04]
completely public. Um there's many
[31:07]
websites. Guidear now candid um posts
[31:10]
everything the 990s which is the tax
[31:12]
return for the foundation has to be
[31:14]
online so everybody can see what's
[31:17]
happening. If you leave money in your
[31:20]
trust to a charity or quite frankly any
[31:23]
beneficiaries in your revocable living
[31:26]
trust, that trust in many states must be
[31:32]
made available to um any of the
[31:36]
beneficiaries. If you leave all your
[31:38]
charitable dollars in uh in your living
[31:41]
trust to your donor adise fund, the
[31:44]
donor adise fund will of course need to
[31:48]
see the trust, but that's it. So, you
[31:52]
want to leave money to five charities.
[31:54]
Each of the charities don't get a copy
[31:56]
of your living trust if you have the
[31:58]
donor advice fund. Um Allison's going to
[32:00]
talk about this a little bit later. The
[32:02]
other thing you know reason maybe people
[32:04]
want to set up a foundation is they want
[32:06]
to involve their family. Luckily these
[32:09]
donor advice funds you can involve your
[32:11]
family. You can create a family donor
[32:13]
advice fund and even after you pass away
[32:16]
you can appoint a successor grtor or
[32:19]
grtors
[32:21]
after you pass away. And Allison's going
[32:24]
to be talking about that in a couple
[32:26]
minutes actually. So I think uh that's
[32:29]
probably all I have. And if anybody has
[32:31]
any questions, I'm sort of
[32:34]
>> reading this uh but I don't I don't
[32:37]
think I see anything
[32:41]
uh what happened fun after the granter
[32:43]
dies. Is somebody else going to answer
[32:44]
that or should I answer that?
[32:45]
>> Yeah, I uh I answered that. Uh I think
[32:48]
Robin's going to touch on that. We have
[32:50]
succession plans.
[32:52]
>> Yes. for uh for you could where you
[32:55]
could leave the rights of the fund to
[32:58]
heirs or actually anyone you wish and
[33:02]
give us a call and we can tell you
[33:04]
exactly how that works.
[33:06]
>> And it's just a great it's such a I'll
[33:08]
just tell you a very very quick story. I
[33:10]
had a a couple I met with them. It
[33:13]
turned out they did need a very quick uh
[33:17]
charitable deduction because they had
[33:20]
had a high income event. A couple of
[33:22]
properties had sold during the calendar
[33:24]
year. We set up the donor adise fund
[33:26]
with them. They ended up including their
[33:29]
daughter, adult daughter and son-in-law
[33:31]
in the donor adise fund. And then from
[33:33]
that donor adise fund, they have a um
[33:37]
special needs granddaughter. So they
[33:39]
made a grant to our special and uniform
[33:41]
program which was very touching. The um
[33:45]
[clears throat] both the uh the donor
[33:49]
and then his son-in-law are physicians.
[33:51]
So they made um a grant to a hospital
[33:55]
that we're building about to open up in
[33:57]
Kiriat Shimona. Very very generous. And
[34:00]
they also made an additional grant to
[34:03]
our um to the uh hospital in a negative.
[34:07]
and they went to visit. They all four
[34:09]
went to visit um in the last couple
[34:12]
months and they really got to see the
[34:14]
fruits of their donations and it was
[34:17]
just very very special for them. So
[34:20]
these things do actually turn into real
[34:24]
effects like they have an effect and
[34:26]
make the world a better place and it's
[34:28]
just a great way to streamline that
[34:30]
experience.
[34:32]
>> Good. Thank you Cynthia.
[34:34]
>> Yep. Uh we're going to introduce now
[34:37]
Allison Naggelberg. Allison is the baby
[34:40]
of the family. She's only been here what
[34:42]
is it? Three, four years.
[34:44]
>> Four years.
[34:45]
>> Three years. Allison comes to us as a
[34:49]
corporate counsel. She's ex very active
[34:53]
in her Jewish community and she is also
[34:56]
an expert in the area. So Allison, it's
[35:00]
your turn.
[35:01]
>> Sure. Thank you, Matt. Um, so I want to
[35:05]
talk about really dig into what Deb was
[35:08]
talking about with her family because my
[35:11]
family has the Deb model and we started
[35:14]
very young and the message is it is
[35:17]
never too soon to start talking about
[35:19]
philanthropy with your family. So when
[35:22]
my sister and I were very young, not in
[35:24]
our 30s, I'm past my 30s now. We were
[35:28]
probably elementary school or middle
[35:30]
school. My parents opened a donor
[35:33]
advised fund and they didn't keep that
[35:35]
fund to themselves just as you know
[35:38]
finances just something for the adults
[35:40]
in the family to talk about. They
[35:42]
brought me and my sister into the
[35:44]
conversation and they asked us to
[35:46]
recommend grants as Deb was saying from
[35:49]
their donor advised fund in line with
[35:52]
the values that our family cared about.
[35:55]
And what happened from that was that
[35:58]
giving and talking about giving became
[36:00]
part of our family life. My parents,
[36:03]
they were teaching us by doing and by
[36:06]
including us in these decisions. Every
[36:08]
single grant mech recommendation was a
[36:11]
lesson. What matters to us? What kind of
[36:14]
people do we want to be? What kind of
[36:16]
family do we want to be? So, this was
[36:19]
not just a once a year. It wasn't just
[36:21]
at Hanukkah or Thanksgiving. This was
[36:24]
something and is something that we talk
[36:26]
about all year long. We talk about it
[36:29]
around the dinner table, on vacation, on
[36:32]
Shabbat. We could be sitting on a beach
[36:34]
and talking about philanthropy. A little
[36:36]
nerdy, but that's what we do in my
[36:38]
family. And this is just part of our
[36:40]
daily lives, just like other families
[36:42]
talk about school or sports or what's
[36:44]
for dinner. So, one message I want you
[36:47]
to take away, start conversations about
[36:50]
philanthropy with your family. Don't
[36:53]
wait till your kids are grown. Don't
[36:56]
wait till you have a perfect plan. Just
[36:58]
start now. And it doesn't even matter
[37:00]
what size gifts you make. Another
[37:03]
important message some of the speakers
[37:05]
touched on a bit. Find out what matters
[37:08]
to your kids and grandkids. You might be
[37:10]
surprised actually. and also tell them
[37:14]
what matters to you. This is really a
[37:16]
two-way street. You share your values
[37:19]
and you make room for theirs. So, one
[37:22]
family I work with, the kids were very
[37:25]
interested in food security and and
[37:27]
Israel wasn't so much on their radar.
[37:29]
The parents though, they were able to
[37:31]
share with the kids what JNF's partner
[37:34]
Hashimh Khadash does with food security,
[37:36]
which has literally kept Israel's food
[37:39]
supply intact since October 7th. The
[37:42]
kids loved it. They liked that they were
[37:44]
making a grant to Hashadash
[37:46]
because it supported their belief in
[37:48]
helping the hungry and it helped their
[37:50]
parents who wanted to help Israel. And
[37:53]
as many of you on the call know, JNF's
[37:55]
projects in Israel are so extensive.
[37:58]
There's probably a perfect match of a
[38:00]
project for almost any cause that
[38:02]
someone cares about. So the practical
[38:05]
step as Deb mentioned uh allocate an
[38:08]
amount from the DAV for each child or
[38:11]
grandchild to recommend a grant. Give
[38:14]
them each a real amount and real
[38:16]
responsibility for choosing where it
[38:18]
goes. These days as Cynthia was saying
[38:21]
you can check 990s. They can learn about
[38:23]
the charities. They can really see if
[38:26]
this is where they want to give. And
[38:28]
nothing teaches responsibility like
[38:30]
being trusted with a real decision. So
[38:34]
the tagline here lidor vador from
[38:36]
generation to generation our values are
[38:39]
not going to transmit themselves they
[38:41]
have to be lived they have to be spoken
[38:44]
and they have to be handed down and
[38:47]
that's very well accomplished through a
[38:49]
donor advised fund. Next slide please.
[38:54]
So in our family the conversations that
[38:56]
we had were about Jewish values and
[38:59]
Zionist values and other causes that
[39:01]
were dear to my parents. They like the
[39:03]
symphony. They like the arts. But Israel
[39:05]
was part of our regular discussions.
[39:08]
Family, as you can see, this family
[39:10]
sitting around the table here, not my
[39:12]
family. It's a dinner table
[39:14]
conversation. And it becomes part of the
[39:16]
family routine. It's not on just a
[39:19]
special occasion. It's the things that
[39:21]
we do over and over that our kids are
[39:24]
going to remember. The Shabbat table,
[39:26]
the family trip, the regular
[39:28]
conversation. It's part of our routine.
[39:31]
It is not a big burden. It's just part
[39:33]
of who we are. So, you can do all of
[39:36]
these things together, talk together,
[39:39]
make family decisions together. We
[39:42]
didn't just get a lecture from my
[39:43]
parents. We learned with them. And
[39:46]
sometimes we disagreed. And that was
[39:48]
really good. debates are not a problem
[39:51]
because when a young person is arguing
[39:54]
thoughtfully about which organization
[39:56]
deserves support, they're starting to
[39:58]
think like thoughtful stewards of really
[40:01]
hard-earned money. I think Deb mentioned
[40:04]
they have a family mission statement.
[40:06]
You don't need a lawyer. You don't need
[40:08]
a consultant. You sit down together with
[40:10]
the kids, with the family, and you ask,
[40:13]
"What do we believe? What do we want our
[40:16]
giving to accomplish?" and start to
[40:18]
write the answers down. So actually in
[40:21]
my family when the grandchildren started
[40:23]
recommending grants they asked my
[40:25]
parents to expand the mission statement
[40:28]
to helping people in need and my parents
[40:30]
were really happy to do this and by
[40:33]
using the donor adise fund this way you
[40:36]
can really ensure that Israel is a is a
[40:39]
priority for generations to come.
[40:41]
[clears throat] Next slide.
[40:44]
So, as my sister and I grew up, we
[40:46]
opened our own donor advised funds. I
[40:49]
actually once upon a time had mine with
[40:51]
Bank of America. I moved it to JNF long
[40:54]
before I was here for the main reason,
[40:57]
as Cynthia mentioned, we do not give
[40:59]
grants to anti-Israel organizations. So,
[41:02]
my parents then they continue the
[41:04]
tradition of having their grandchildren
[41:06]
recommend grants. And now the
[41:08]
grandchildren, my kids, my sister's
[41:10]
kids, they talk about philanthropy all
[41:13]
the time. They're now in their 20s and
[41:15]
30s. And some of them have opened their
[41:18]
own donor advised funds. So, they're all
[41:21]
learning about Jewish and Zionist values
[41:23]
and all the causes that my grand that my
[41:26]
parents um cared about. My dad actually,
[41:29]
he's now 92 and going strong. And his
[41:32]
youngest grandchild is 29. That happens
[41:35]
to be my youngest daughter who made
[41:37]
aliyah to serve in the IDF. And I have
[41:40]
no doubt that her decision was
[41:42]
influenced by the family commitment to
[41:44]
supporting Israel. And I also have no
[41:46]
doubt that very soon the great
[41:48]
grandchildren are going to be reading my
[41:50]
dad's emails. They always say family
[41:52]
philanthropy and they're going to be
[41:54]
chiming into the family conversations
[41:56]
about this topic. Uh another quick story
[41:59]
about a donor that I work with. The
[42:02]
adult grandchildren inherited some money
[42:04]
from their grandmother. And rather than
[42:07]
use all of the money for their own
[42:09]
purposes, each child took the money to
[42:12]
open their own donor advised fund to
[42:15]
independently make grants to the
[42:17]
charities that he or she cared about and
[42:20]
further the legacy of their grandmother.
[42:23]
One other insight, something that
[42:25]
happens when kids and grandkids start
[42:27]
giving from donor advised funds, they
[42:29]
then start to step up not just with the
[42:32]
family dollars, but actually with their
[42:35]
own time and energy and they start
[42:37]
volunteering. So, if you've ever
[42:39]
wondered how to get your kids involved
[42:41]
in charitable giving and charitable
[42:43]
doing, a donor advice fund is really a
[42:47]
good place to start. Um, I'll add some
[42:50]
of my colleagues have touched on this.
[42:51]
You don't have to do this alone. The JNF
[42:54]
USA plan giving professionals, all of us
[42:56]
here on this on this webinar as well as
[42:59]
Deb of course, we will be happy to help
[43:01]
you. We can even do it together with
[43:03]
your financial advisors if you want.
[43:05]
Don't have to. And we can help you build
[43:07]
a giving strategy and assess the impact
[43:10]
of your philanthropy and really plan for
[43:13]
Jewish continuity. So, I just want to
[43:15]
leave you with a few things that you can
[43:17]
do in the next few weeks or the next few
[43:19]
months. Number one, have a conversation
[43:23]
at your next dinner or your next
[43:25]
Shabbat. Ask the young people in your
[43:28]
life what they care about and tell them
[43:31]
what you care about. Second, give them a
[43:34]
role. Set an amount. Let each child or
[43:38]
grandchild recommends a grant in line
[43:40]
with your family's values. And third,
[43:44]
think about what you want your family's
[43:46]
giving to say about who you are. just it
[43:49]
can be a small mission statement but it
[43:51]
will really help you to have something
[43:53]
to come back to as you're evaluating
[43:55]
your grant as you're evaluating truly
[43:58]
your family's legacy because that is
[44:01]
Lorador
[44:03]
and Matt um if you want to go forward
[44:05]
from here.
[44:06]
>> Yeah, thank you Allison. I neglected
[44:09]
when I introduced Allison two things
[44:11]
that everyone should know. Um I
[44:14]
mentioned she's a she was a corporate
[44:15]
attorney before coming to us. Allison
[44:18]
covers the northeast for Jewish National
[44:21]
Fund and the Northeast for us is
[44:24]
everything from Virginia to Maine. So
[44:27]
she also has a very large area that she
[44:30]
covers and uh consults with donors on
[44:34]
plan giving vehicles and and of course
[44:37]
our donor advice fund. And just a piece
[44:39]
of information, Allison's daughter is a
[44:43]
uh lone soldier, lives in Israel, and
[44:46]
recently wrote a book and uh
[44:49]
extraordinary person and uh we're happy
[44:52]
to have um Allison with us. So, our
[44:56]
final speaker will be uh Robin Dur.
[45:00]
Robin Durmer is also an attorney and has
[45:04]
been with Jewish National Fund going on
[45:06]
12 years. Robin covers the state of
[45:10]
Florida, uh, the whole state from
[45:14]
Key West up to Jacksonville, and, uh,
[45:17]
she's been with us, like I say, for 12
[45:19]
years. She's an expert in the area and
[45:21]
is an extraordinary professional. So,
[45:24]
Robin, we offer you the, uh, the podium.
[45:31]
>> You're muted. [snorts]
[45:33]
>> Got it. There you I wanted to say thank
[45:36]
you Matt and thank you to all my
[45:37]
wonderful colleagues who I have the
[45:39]
pleasure of working with um for with
[45:43]
some of you for almost uh 12 years. So I
[45:47]
um everything about a donor advice fund
[45:50]
seems to have been mentioned. So I have
[45:53]
been tasked with the opportunity to sort
[45:55]
of do a recap. So the first thing I I
[45:58]
want to say is
[46:01]
some people do not have heirs. They
[46:04]
don't have children. They don't have
[46:06]
someone that they want to be able to
[46:08]
share those values with after they're
[46:10]
gone. And in that case, the donor advice
[46:14]
fund can still be reflective of your
[46:17]
values during your lifetime. I'll give
[46:19]
you an example. I've worked with a a
[46:21]
client for some years and he opened his
[46:24]
donor advice fund. He had a dozen
[46:28]
organizations that he believed in that
[46:30]
he wanted to continue to support. So we
[46:32]
were able to enter into an agreement
[46:34]
with him that after his passing we will
[46:37]
continue to support those organizations
[46:40]
according to his wishes in perpetuity
[46:43]
until the fund is depleted. So the
[46:46]
succession goes beyond having children
[46:49]
or heirs or someone to take it on. Um,
[46:53]
that being said, when you open a donor
[46:55]
adise fund with Jewish National Fund,
[46:57]
they begin at $10,000.
[47:00]
And as was mentioned, you can give cash,
[47:03]
appreciated securities, or other assets,
[47:06]
which we will consider. You can add to
[47:08]
the fund any time throughout your
[47:10]
lifetime. And next slide, please. It
[47:14]
could be opened in as little as 15
[47:16]
minutes online or with our help. We like
[47:19]
to consider ourselves as u philanthropic
[47:22]
conciergees through the process. Meaning
[47:25]
if there are organizations that you're
[47:27]
interested in granting to but you want
[47:30]
more you want to find out if you know
[47:32]
what their uh administrative costs are.
[47:35]
Are they a four-star organization like
[47:37]
Jewish National Fund? Is this an
[47:39]
organization for example you want to
[47:41]
give to Parkinson's which is the best
[47:43]
organization that you'd want to grant
[47:45]
to? We'd like to consider ourselves as
[47:47]
consultants that can help you to make
[47:49]
those determinations.
[47:51]
Jewish National Fund, as most of you are
[47:53]
aware on the call, is a four-star
[47:55]
charity navigator organization, and we
[47:58]
have been for over a decade. What most
[48:01]
people don't realize is only 3% of
[48:03]
organizations, both Jewish and
[48:05]
non-Jewish, and there are hundreds of
[48:08]
thousands of nonprofits, can attest to
[48:11]
that kind of four-star charity navigator
[48:14]
designation for that long of a
[48:16]
consistent period of time. So, when you
[48:19]
open your donor advised fund, you are
[48:22]
able to select an investment approach.
[48:24]
We have uh
[48:27]
six different choices going from a money
[48:29]
market all the way up to an aggressive
[48:32]
approach. Um the allocation will depend
[48:35]
on your comfortability. We can talk
[48:37]
about that. You choose three different
[48:39]
pools. You can change each quarter if
[48:42]
you're uncomfortable with the growth in
[48:43]
the pool or if you feel like you want to
[48:45]
move it around. Um
[48:48]
once you have your donor advi advice
[48:51]
fund established, you can log in,
[48:53]
recommend a grant. Each grant should be
[48:56]
$250
[48:57]
and above. And then we usually will send
[49:00]
the grant within a week to 10 days
[49:03]
following your recommendation.
[49:06]
Next slide.
[49:08]
The only thing that we ask in return is
[49:12]
that 1515%
[49:15]
of the value of that fund goes to a
[49:18]
Jewish National Fund project or partner.
[49:22]
And this is something that doesn't have
[49:23]
to be made a decision upfront. That's
[49:26]
one of the beautiful parts about having
[49:28]
a donor adise fund is you can take the
[49:30]
contribution deduction in the year that
[49:33]
you make establish the donor adise fund
[49:36]
or make the contribution, but you don't
[49:38]
have to decide where you want the grant
[49:41]
to go until you're ready to make that
[49:44]
decision and something resonates with
[49:46]
you. So
[49:49]
what donor advice funds are able to give
[49:52]
you as opposed to a family a foundation
[49:56]
is the flexible giving that that you
[49:59]
don't normally have with other with a
[50:02]
family foundation. The other thing about
[50:04]
a donor adise fund is that if you have a
[50:07]
donor advised fund with say a Fidelity
[50:09]
or a Schwab or another institution, you
[50:12]
can transfer that fund to Jewish
[50:15]
National Fund with no taxes or transfer
[50:18]
fees.
[50:21]
And I wanted to open this up really as
[50:25]
part of the recap to any questions that
[50:27]
people may have who are on the Zoom
[50:29]
about our donor adise fund and um how it
[50:33]
can be beneficial to you. So if it's
[50:36]
okay with you, Matt, I'd like to open up
[50:38]
to questions.
[50:39]
>> Go right ahead. Go right ahead.
[50:44]
>> Anybody have a question?
[50:47]
Email rather than text slides. Okay,
[50:49]
Deb, you have a question.
[50:50]
>> So, I I asked a question in the chat,
[50:52]
but maybe you can answer. At what point,
[50:54]
if at all, does the fund revert to JNF?
[50:58]
So, let's say I appoint my daughters as
[51:00]
successor adviserss, they do nothing
[51:02]
with it. What if I don't appoint
[51:04]
successor adviserss? Does at some point
[51:07]
the balance that's in the fund revert to
[51:10]
JNF
[51:11]
for allocation in its general fund? So
[51:15]
if you don't mind, Rob, so we have a
[51:18]
succession plan and the succession plan
[51:21]
says that a donor or donor spouse, it's
[51:25]
married couple um can grant the rights
[51:31]
of the fund to another group for a term
[51:35]
of their lives or 20 years whichever
[51:39]
comes first.
[51:40]
>> Okay. If at the end of the donor's life
[51:43]
there is no successor successor su
[51:47]
successor named whatever balance remains
[51:50]
in the account at that time will come to
[51:53]
Jewish national fund and if there are
[51:55]
written instructions on how to how to
[51:59]
distribute that money within we will
[52:01]
follow that if at the end of the uh
[52:04]
succession period where the heirs have
[52:06]
either exceeded uh their 20 years or
[52:09]
have passed Again, whatever balance
[52:12]
remains will come to Jewish National
[52:15]
Fund. But at no time, I want to respond
[52:20]
Deb to your opening remarks. Do we take
[52:23]
money out of the fund for things like
[52:26]
growth or dividends unless directed by
[52:30]
the donor themselves?
[52:34]
Any other questions?
[52:38]
All right. So there was there was one
[52:41]
early on. Can you move money in an IRA
[52:44]
to a donor advised fund without tax
[52:46]
consequences?
[52:47]
>> I think we answered that question, but
[52:49]
we'll answer. We did. Okay. Sorry. You
[52:51]
cannot. I think Bill answered it. You
[52:52]
cannot use IRA tax pretax dollars into a
[52:58]
donor advised fund because obviously you
[53:00]
can't get a charitable deduction for
[53:03]
money that you never paid tax on to
[53:04]
begin with. So you can take an R&B for
[53:09]
example and then you'd have to take it
[53:12]
and then deposit it into your donor
[53:15]
adise fund but it cannot go directly
[53:17]
from an IRA to a deaf.
[53:20]
>> You asked a question you raised your
[53:23]
>> count as a qualified charitable
[53:25]
distribution. So, it's really not a
[53:28]
great asset to use to fund a donor
[53:31]
advice fund because you're going to end
[53:32]
up paying the tax on the distribution,
[53:34]
the income tax before you fund.
[53:36]
>> So, if you have appreciated stock would
[53:38]
be a much better bucket to pull from
[53:42]
>> bill.
[53:44]
Go ahead,
[53:45]
>> Matt. Just sorry, Michael just asked,
[53:47]
must you maintain a minimum in the fund?
[53:49]
No, you can spend it down every year.
[53:51]
Um, or you can keep a balance in there.
[53:54]
It's up to you. Um, and then the last
[53:56]
another question was just asked how
[53:58]
difficult is to change from one entity
[53:59]
to another. It's very simple. You're
[54:01]
it's simply making a grant from the
[54:03]
organization that you're at. A grant
[54:05]
that would close that fund and then move
[54:07]
it over to Jewish National Fund.
[54:10]
>> Bill, was that your question that uh
[54:12]
Bill just answered? Bill to Bill. It's a
[54:15]
very good Bob. Excuse me. Thank you.
[54:17]
Right. Thank you.
[54:19]
>> I I was gonna Matt uh one more point
[54:21]
that someone had uh had texted. Do
[54:23]
people use both an IRA and a donor
[54:27]
advised fund? So if you're in your 70s,
[54:29]
maybe you're making some of your grants
[54:30]
from your IRA. And the answer is yes.
[54:33]
There is many people who use both their
[54:35]
IRA and their donor advised fund to make
[54:38]
grants. And they accomplish different
[54:40]
tax goals. First of all, with an IRA,
[54:43]
there are some limits. You can only go
[54:45]
up to $111,000 in outright gifts in a
[54:48]
year. We won't go into all of that now.
[54:50]
and some people want to give beyond
[54:52]
that. Um, and that's where our donor
[54:54]
advice fund can come in handy. In
[54:56]
addition, people have gains that they
[54:59]
need to offset in a particular year. So,
[55:01]
that becomes another good reason to fund
[55:04]
a donor advised fund. Use it for the
[55:07]
giving when you want or when your
[55:09]
children, your family wants to and
[55:11]
continue to make gifts with your IRA.
[55:13]
So, they are definitely not mutually
[55:16]
exclusive ways of giving.
[55:18]
You know, Allison brought up an
[55:20]
interesting point as far as timing goes.
[55:23]
You know, at the end of the year, many
[55:24]
people write checks because they need to
[55:26]
give all away need to give away the
[55:28]
money before December 31st. Using the
[55:31]
donor advice fund, you write one check.
[55:33]
As long as we get it by December 31st,
[55:36]
it counts for the year. And then you can
[55:39]
breathe easy, relax, make your grants in
[55:43]
the following year. So you don't feel
[55:46]
you have to be writing out 10 or 20
[55:48]
different checks to various charities to
[55:51]
satisfy some deduction that you might
[55:54]
need at the end of the year. So as we've
[55:56]
been saying, it's very flexible. It's a
[55:59]
terrific way to manage your philanthropy
[56:02]
and our program has our our product has
[56:06]
a lot of features that we don't think
[56:09]
you might find um at a commercially
[56:12]
available program.
[56:14]
Any other questions?
[56:17]
I'll leave you with this and then we'll
[56:19]
just say so long and say thank you. It's
[56:21]
a real issue for for the Jewish
[56:24]
community. we are losing our children.
[56:26]
Um, and this donor advised fund is a way
[56:31]
to, as been mentioned before, to connect
[56:34]
families with values to sit around and
[56:38]
make decisions on how philanthropy
[56:40]
should be made, including Israel and our
[56:44]
Jewish organizations. And I will tell
[56:47]
you because I see every grant that goes
[56:49]
through, 95% I'm very proud of this. 95%
[56:54]
of the grants from Jewish National Fund
[56:57]
donor adise fund goes to support Jewish
[57:01]
organizations.
[57:03]
Not all Jewish National Fund. That would
[57:05]
be nice. But no, we support synagogues,
[57:08]
universities,
[57:10]
um you name it, we do it as long as, as
[57:14]
has also been mentioned, the grant is
[57:17]
not to an organization that is uh
[57:20]
anothetical to who we are, meaning no
[57:23]
anti-Israel, no BDS.
[57:26]
And um that's the story. It's a terrific
[57:30]
program. Look into it. you'll find it to
[57:33]
be very cost competitive and the uh
[57:36]
services I think you'll find to be very
[57:39]
generous.
[57:39]
>> I just wanted to to mention again there
[57:42]
are no transfer fees, no taxes if you
[57:45]
move your donor adise fund from one
[57:48]
donor adise fund to another. Bob, I just
[57:50]
want to make sure that we answered that
[57:52]
question for you. Um, you just simply
[57:54]
make a grant from the Federate
[57:56]
Foundation or wherever your donor adise
[57:59]
fund is sitting now to Jewish National
[58:01]
Fund and we'll put it into your JNF
[58:04]
donor advised fund.
[58:06]
>> Okay. There is uh and one more thing
[58:08]
I'll leave it. There's 247 web access.
[58:11]
You can check your balances, make your
[58:13]
grants,
[58:15]
check us out. I think you'll be
[58:16]
impressed with the offering. If you need
[58:18]
anything, you give us a call 1
[58:21]
800-562-7526
[58:24]
or plangivingjf.org
[58:27]
and we will um we'll help you out. So
[58:30]
again, thank you for joining us. Look
[58:32]
for new webinars that'll be coming on
[58:35]
about various aspects of what our plan
[58:38]
giving department does in support of
[58:40]
Israel and our donors. And we look
[58:42]
forward to seeing you again. So thank
[58:44]
you very much.
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